Gunkul Engineering Public Company Limited

Gunkul Engineering Public Company Limited

Strictly Private and Confidential

Content

I. Company Overview

II. Financial Highlight

III. Investment Highlights

IV. Projects Update

2

Section I: Company Overview


Gunkul Engineering PLC (“Gunkul”) operates across the entire renewable energy value chain

Founded in 1982 as an electrical equipment trader. Gunkul later

expanded into manufacturing, EPC business, and filed for IPO in

2010 to grow its renewable generation business

Trader, manufacturer and EPC contractor: Complete value chain

business model provides end-to-end solution in the development of

renewable energy projects

Renewable energy power producer: Power projects with contracted

capacity(1) of 543.1 equity MW in Thailand, Myanmar, Japan and

Malaysia (approx. 64% solar, 34% wind, and 2% gas). As of Q4

2018, we have ~314.5 equity MW in operation

Approx. US$ 705.83 Million market capitalization end of September

2018 (SET:GUNKUL)

Notes:

(1) Including operational, under construction, and secured pipeline.

(2) As of July 2018

(3) Gunkul Group is a holding company with the Dhumrongpiyawut family owning 99.6% of the Group

(4) Dhumrongpiyawut family accounts for 54.0% of Gunkul

Reliable manufacturer and supplier of over 5,000 electrical

equipment and products1

2

World-class renewable energy projects with a visible and

robust pipeline across Asia3

Reputable one-stop renewable energy EPC and O&M

service provider with over 15% market share in Thailand

Gunkul Shareholders(2)

Gunkul Group(3) (4)

49.8%

Mr. Gunkul Dhumrongpiyawut

4.2%

UOB Kay Hian (HK)

2.9%

Others

37.4%

Siam Commercial Bank

3.1%

Thai NVDR

2.2%

Bua Luang Long Term Equity Fund

2.2%

Disconnecting

Switch

Arrester SF6 gas switchLow-voltage

switch

Gunkul Overview

4


From Equipment Trading to Renewable Energy

Secured PPA for

60MW Wind Energy

Development (WED)

Secured PPA for 30.9MW

Gunkul Chubu Powergen

(GCPG)

Founded as an

electrical

equipment trader

1982

Set up factory

for

manufacturing

1992 2010

Initial Public Offering

Entered into renewable

energy

sector as EPC and O&M

contractor

1st solar project

1st wind project

2012

1st gas engine power plant

25MW gas engine power

plant in Myanmar (GKMCP)

2013

Expanded into solar roof

business along with

reputable partners

Solar roof business

2014

Solar PV module manufacturing

1 of 4 manufacturers in Thailand

producing solar PV modules under Thai

Industrial Standard

2015

100

2011

Wind project MOU in

Myanmar

Signed MOU with

Myanmar Ministry of

Electric Power to develop

1,000MW Wind Project

Supplied and set up

Thailand’s

first wind turbine for EGAT

Gunkul transformed itself from a trading company with volatile earnings to a renewable energy player that has

stable cashflow and high margins

Gunkul’s EBITDA from Renewable Power is Expected to Increase from 86% in 2017 to 88% and 92% by 2018 and 2019

Note:Based only on the secured 513.1 equity MW in our portfolio and only 371.3MW to be COD by 2019

Target to

achieve 1,000

contracted

equity MW by

2020

1st Japan Solar Project

31.8MW solar power

plant in Japan (Sendai)

2017 2018

5

1st Solar Rooftop

Private PPA

Structured the

Solar Rooftop

business to be

Private PPA

which the off-

taker are

reputable

companies

1st Malaysia

Solar Project

29.99 MW or

20.99 Equity MW

solar power plant

in Malaysia

86%

14%

89%

11%

92%

8%

2017 EBITDA Breakdown 2018F EBITDA Breakdown 2019F EBITDA Breakdown

Renewable Power Generation

Trading & EPC


High Quality Renewables Asset Portfolio

6

THAILAND

MYANMAR

MALAYSIA

Solar Farm ( 96.1 MW)

Fully COD ( 6 Projects)

Total Gross / Equity (MW) 157.9 / 96.1

Wind Farm ( 170.0 MW)



Solar Rooftop ( 2.8 MW)

Fully COD (9 Projects)


Private PPA Solar Rooftop ( 32.6 MW)

Fully COD ( 1 Project)


Under Construction ( 3 Projects)


Gas-Fired Plant ( 12.8 MW)



JAPAN

Type Scheme Thailand Japan Malaysia Myanmar Total

Feed in Tariff 68.9 207.1 21.0 - 297.0

Adder 27.2 - - - 27.2

Feed in Tariff - - - - -

Adder 170.0 - - - 170.0

Feed in Tariff - - - 12.8 12.8

Adder - - - - -

Feed in Tariff 2.8 - - - 2.8

Adder - - - - -

Private PPA 32.6 - - - 32.6

Total 302.1 207.1 21.0 12.8 543.1


Fully COD( 1 Project)

Total Gross /Equity (MW) 31.8 / 31.8

Under Construction ( 3 Projects)

Total Gross /Equity (MW) 175.3 / 175.3


Under Development ( 1 Projects)


Note:(1) The figure is as of 1 Nov, 2018


Gunkul will continue to grow in Renewable Business to transform

itself into a company with stable income and high margin

Vision: To Become an Asia’s Leading Renewables Company

7

Expand EPC business into Transmission Line & Substation

sectors which support Thailand Electrical System

By 2020, step to secure 1,000MW by increasing

capacity through domestic and international

Enhance Company’s Growth by entering into a Private

Producer Segment

Embrace new technology to drive growth and expose new

opportunities to invest in next step, including small scale

customers

PEAPEA’s Outstanding Project (2019-2023)

in Transmission Line & Substation

169,305 THB Million (1)

Reputable Department Stores

Industrial / Companies

Notes:

(1) https://www.pea.co.th/Portals/0/Document/cpd/60-4%20PEA%20Website.pdf

Smart Living by Gunkul

1.

2.

3.

4.

Total (MW)Existing (MW)

Potential deal (MW)

472302

200

207207

-

12121

100

100-

100

11313

100

Others

Section II: Financial Highlights


Mainly decrease in accounts

receivable and inventory due

to the decrease in EPC

service revenue

3,121 3,360

8,590 9,749 10,184

9,055

212 447

484

463 592

718

178 20

3,369

8,562

13,519

19,453

663

1,151

2,442

2,000

3,200

3,292

405

2,261

3,930

4,822

3,232

2,357

3,257 4,654

12,641

19,523

24,745

29,107

1,098

1,078

2,678

3,605

4,824

4,857

225

1,507

3,497

2,468

1,158

909

4,580 4,580

7,239 7,239

18,815 18,815

25,596 25,596

30,377 30,726

34,874 34,874

0.19x

0.68x

0.85x

1.37x

1.64x

2.41x

0

10,000

20,000

30,000

40,000

2013 2014 2015 2016 2017 3Q2018

0.19x 2.4x0.68x 0.85x 1.37x 1.70x

0.8 1.01.2 0.8 1.0 0.8

Total Assets, Liabilities, and Equities

THB MM

Non-Current AssetsOther Current AssetsCash Current Debt Other Current Liabilities Non-Current DebtOther Non-

Current Liabilities

Total Interest Bearing Debt / Equity (times)

Total Equity

IBD / Equity

Current Ratio

Financial Position

Assets Liabilities

&Equity

Assets Liabilities

&Equity

Assets Liabilities

&Equity

Assets Liabilities

&Equity

Assets Liabilities

&Equity

Assets Liabilities

&Equity

9


Breakdown by Business Unit

63%50%

85%

42%

35%

49%

14%

31%1%

1%

1%

27%

868

541 674 615

712

520

0

1,000

2,000

3,000

4,000

5,000

6,000

2013 2014 2015 2016 2017 9M2017

9M2018

Manufacturing and Trading Revenue

EPC and O&M Revenue

Power Generation Revenue

EBIT

Net Profit

2,9763,367

4,4604,855

45%

20%

35%

4,747

3,641

24%

46%

30%

+588

THB MM

54%

42%

24%

18%

22%

15%

39%

19%

38%

22%

EBIT

Margin

Net Profit

Margin

36%

15%

Decrease in EPC service

revenue while EBITDA

Margin and Net Profit Margin

include Gain on disposal

investment in Gunkul Chubu

Powergen (“GCPG”)

Decrease in Trading Revenue

while Power Generation

Revenue, which has higher

EBITDA Margin and Net Profit

Margin, has increased

2,045

32%

43%

25%

31%

17%

Revenue Breakdown & Earnings

Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit

10

816

1,404

478

1,436

29.5%

42%*Normal

Operation


2017-2019 Forecasted Revenue & EBITDA

11

4,855

6,050

7,560

1,944

3,300

4,500

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2017* 2018** 2019**

Revenue EBITDA

(+25%)

(+25%)

(+70%)

(+30%)

* Fully booked in 2017

** These projections are based on the information as of 2018

Section III: Investment Highlights


Solid Growth Potential for Renewable Energyin Thailand

13

1

Electricity Consumption will Continue to Outstrip Generation

Growth in Renewable Energy Capacity

Looking toward 2036, solar power plays a

significant part in the growth of renewable energy

at 4.4% p.a. while the wind power demonstrates

the strong development at 8.8% p.a.

Solar, 48.3%

Biomass, 31.2%

Wind, 11.0%

Biogas, 5.8%

Waste,3.4%

Solar36.7%

Biomass34.1%

Wind18.4%

Energy Crops, 4.2%

Biogas3.7%

Waste3.1%

2036

16,352 MW3

2017

5,529.0 MW2

Source:

Ministry of Energy, Thailand

182.5 188.5196.1

203.5 210.8 218.1 225.3232.9

185.5192.3

199.1207.2

214.9222.4

230.6239.6

Generation Consumption

Source:

BMI Research Source:

PDP 2015, Thailand

12.0%12.0%

16.4%17.5% 19.3%

2017 2020F 2025F 2030F 2036F

Combine Cycle Hydro Renewable Thermal Cogeneration other

Generating Capacity By Power Plant Types (MW)Thailand Electricity Generating and Consumption (TWh)

46,1091

54,141

60,40363,037

70,335

Note:

(1) The sum of EGAT capacity and VSPP

Note:

(2) The total number is retrieved the sum from EGAT, IPP, SPP and VSPP, retrieved from ERC, (3) The number comes from PDP


14

Fast Growth in Renewable Energy Sector Supported by Favorable Government Policies

2

Source: Japan’s Energy Plan, Ministry of Economy, Trade and Industry, Sustainable Energy Development Authority Malaysia, The Eleventh Malaysia Plan, Vietnam Power

Development Plan for the period 2011-2020, Highlights of the PDP 7 revised, by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Japan’s Energy Plan, 2015 The Eleventh Malaysia Plan,2015 and

National Renewable Energy Policy &

Action Plan, 2009

Power Development Plan7,

Revised 2015

To increase the domestic

energy dependency rate

from 6.1% in 2013 to nearly

25.0% in 2030

Promote the green growth by

establishing the supportive

financing mechanisms

Provide adequate electricity for

the growing demand through

the construction of the power

transmission grid

Promote the use of renewable

energy to account for

22.0-24.0% in 2030

Increase the share of renewable

energy in electricity generation

from 556MW in 2017

to 3,484MW (13.0%) by 2030

Prioritize the use of renewable

energy from less than 1% in

2016 to more than

10% in 2030

Promote the generation from

- solar: to 7.0% and

- Wind: to 1.7% of the total

generating capacity


- solar: from 372MW in 2017 to

854MW (3.2%) by 2030


- solar: from negligible level to

12,000MW (3.3%) and

- Wind: from 140MW to 6,000MW

(1.0%) of the total generating

capacity


15

Track Record of Accelerated Growth3

15.8 10.4 1.0

12.8 2.8

58.3 10.0

50.0

2.6

1.0

50.0 314.5

1.1 33.5

8.0

2.6

60.0

31.8

0.5

20.010.0

21.0

66.8

75.0 542.4

0

200

400

600

GCPGCOD2011

GPSCOD2012

NKCOD

Q4 2013

GKMCPCOD

Q4 2013

SolarRooftop

CODQ2 2014

RNSCOD

Q4 2015

BMPSCOD

Q2 2016

WEDProject 1

CODQ1 2016

WEDProject 2

CODQ3 2016

ECOQ4 2016

PrivatePPACOD

Q2 2017

GNPCOD

Q1 2018

KWECOD

Q2 2018

SendaiCOD

Q4 2018

OperationalCapacity

PrivatePPACOD

Q1 2019

KimitsuCOD

Q1 2019

PrivatePPACOD

Q1 2019

PrivatePPACOD

Q2 2019

PrivatePPACOD

Q3 2019

KenyirGunkulCOD

Q4 2019

UtsunomiyaCOD

Q1 2022

IwakuniCOD

Q1 2022

TotalEquity MW

Solar Gas Wind

Gunkul demonstrated a track record of successful capacity build-up and this translates into more stable and

recurring electricity revenue

Note:

Source: Company Filings and Company Information

Equity MW

Under Construction / Under Development

(Q4 2018 – 2022)

In Operation

(2011 – Q4 2018)


16

Vertically Integrated Business Covering Downstream Segments of Renewable Energy

4

Trading and ManufacturingEngineering, Procurement

& ConstructionPower Generation

Samples of In-House Products

Cable and accessories, capacitor, fuse and switch, grounding, hardware and connector, Insulator, lightning protection, live part cover, maintenance equipment, meter, preformed, tool and instrument, transformer

Distribution

Line

Transmission

LineCable and accessories, fuse and switch, hardware and connector, insulator, lightning protection, maintenance equipment, tool and instrument

Power PlantWind turbine component, solar panel component

Low Voltage

Line

Capacitor, explosion proof product, fuse and switch, grounding, hardware and connector, insulator, lightning protection, meter, preformed, street lighting and control, telephone hardware

SubstationBattery and charger, capacitor, grounding, maintenance equipment, meter, tool and instrument, transformer

Low-voltage

switch

Cutout

Arrester

Disconnecting

Switch

SF6 gas switchGunkul’s Own Projects

“Allow Gunkul to exploit economies of scale and cost saving advantages”

Solar

Wind

Gas Engine

Geographical

DiversificationEnergy Mix

Thailand: 53%

Japan: 41%

Malaysia: 4%

Myanmar: 3%

Solar: 64%

Wind: 33%

Gas Fired: 3%

Note: Above pie charts demonstrate Existing Equity MW

Existing Power Plants

Total Equity Capacity of 543 MW

543 MW

(Equity)

543 MW

(Equity)

Project Reference

Project Owner MW EPC O&M

1) GPS 26.00 P P

2) GCPG 30.90 P P

3) NK Power Solar 1.00 P P

4) CK & Sun Solar

Power Plant8.00 P P

5) Solatra Solar

Power Plant8.00 P

6) BSE (NMA) 12.50 P P

7) BSE (CPM1) 12.50 P P

8) Solar Rooftop 26.78 P P

9) RNS 87.00 P

10) BMPS 8.00 P P

11) ECO 5.00 P P

12) WED (1) 60.00 P

13) GNP (1) 60.00 P

14) KWE(1) 50.00 P

Total 395.68

Note: (1) Only Balance of Plant Part


17

Cost-savings by Rooftop Solar Private PPA

Year 1-20: Electricity charge will be paid to Gunkul at

agreed purchase price

Year 1 2 … 20 21 … 24 25

At the end of year 20:

Asset will be transferred to purchaser

Household Smart living by GUNKUL

Gunkul has expanded business further

• G-VISION

• G-SYSTEM

• G-SERVICE

• G-EXPERIENCE

• G-SMART

Private PPA between

Gunkul and Purchaser

PPA Life of 15-20 years

Electricity will be charged at

discount rate

Capturing Untapped Potentials of Rooftop Solar & New Technology

5


18

Experienced Management Team Able to Deliver on Growth Targets

6

The Management team, who has successfully grown the Company to where it is today, is committed to

achieving Gunkul’s growth targets

• 21-year expertise in manufacturing/ supplying electrical

products & renewable energy products, and generating

electrical power from renewable energy resources

• Over 21-year experience with Gunkul

• CEO since 2012

• Managing Director 1998-2012

Miss Sopacha

Dhumrongpiyawut

Chief Executive

Officer

Mr. Thamrong

Chankraithong

Senior Vice

President, Sales &

Marketing

• 24 years of experience in the power industry

• 24 years of experience with Gunkul

• Senior VP, Sales & Marketing since 2010

• Assistant General Manager, Public Sector and

International 2008-2010

• 12-year expertise in Renewable Energy business

• Over 12-year experience with Gunkul

• Leading Gunkul to Initial Public Offering in 2010

• Managing Director since 2012

• Deputy Managing Director 2010-2012

• Assistant Managing Director 2007-2010

Dr. Somboon

Aueatchasai

Managing Director

Mr. ThitipongTecharatanayuenyong

Chief Financial Officer

• Over 17-year experience in financial management of

Thailand’s listed companies. 5 years of experience in

the power industry

• Expertise in capital market and derivative products

• CFO and member of the Risk Management committee

and Secretary since 2014



• Deputy Managing Director since 2016

• Assistant Managing Director, Business Development &

Strategic Planning 2014-2015

Mr. Phongsakorn

Damnoen

Deputy Managing

Director

Miss Naruechon

Dhumrongpiyawut

Assistant Managing

Director



• Assistant Managing Director since 2017

• Senior VP, Strategic Planning and Investment 2014-

2017

• Senior VP, Logistics since 2016

• VP, Strategic Planning and Investment 2012-2014



• Senior VP, Factory since 2010

Mrs. Areewan

Chaloemdan

Senior Vice

President,

Factory



• Senior VP, PM & OM since 2015

Mr. Phairot

Phanukan

Senior Vice

President, Project &

Operation

Management



• Senior VP, Human Resource and Administrator since

2010

• Member of Nomination and Remuneration Committee

since 2008

Mrs. Somluk

Kanuenghet

Senior Vice

President,

Human Resource

and Administrator



• Senior VP, Gunkul Energy Solution & Lighting since

2016

• VP, Logistics 2011-2015

Mr. Phudis

Triwilaskul

Senior Vice

President, Gunkul

Energy Solution &

Lighting

• Founder and Chairman

• 36-year extensive experience in Energy

business

• First mover in Renewable Energy business

Mr. Gunkul

Dhumrongpiyawut

Chairman / Founder

Section IV: Projects Update


Wind Projects

Korat Wind Energy

Installed Capacity : 50 MW

COD : 20 June 2018

Greenovation Power

Installed Capacity : 67.5 MW

COD : 27 March 2018


GNP – Wind Project

Project : Sarahnlom Wind Farm

Location : Huay Bong, Dan Khun Tod,

Nakorn Ratchasima

Contract Capacity : 60 Megawatts

Turbine Capacity :

2.0 & 2.1 Megawatts

(33 Wind Turbine Generators)

Commercial Operation Date :

27 March 2018













The world's highest

Tubular wind

turbine

: overall height of 210 M


KWE – Wind Project

Project : Mittraphap Wind Farm

Location : Don Muang and Nong Nam Sai, Sikhio, Nakorn Ratchasima

Contract Capacity : 50 Megawatts

Turbine Capacity : 2.5 Megawatts (20 Wind Turbine Generators)

Commercial Operation Date : 20 June 2018










Sendai – Japan Solar Project

Sendai

Solar Radiation Map of Japan

Project Description

Project Name Sendai

Location Sendai, Japan

Contract capacity 31.8 MW

Installed capacity 38.1 MW

Project Milestones

All Permit Completed

COD : 1 November 2018

SENDAI


Sendai – Solar Project (Southern area)

Overall installation


Sendai – Solar Project (Northern area)

Overall installation


Sendai – Solar Project


Sendai – Solar Project


Kimitsu – Solar Project

Solar Radiation Map of Japan

Kimitsu

Project Description

Project Name Kimitsu

Location Kimitsu, Japan

Contract capacity 33.5 MW

Installed capacity 40.4 MW

Project Milestones

All Permit Completed

SCOD 1Q2019

KIMITSU



PV module installation on steep slope (Zone 2 - Block 4)

PV module installation (Zone 2 - Block 3)







Solar Rooftop & Solar Floating


Solar Rooftop Project

44


Solar Rooftop Project

45


Solar Floating Project

46


Disclaimer

47

This presentation has been prepared by Gunkul Engineering Public Company Limited (“Gunkul”) for informational purposes only and

does not constitute a recommendation regarding the securities of Gunkul or any of its subsidiaries. This presentation is not intended as,

and does not form part of, any offer to sell or solicitation or invitation to buy or subscribe for any securities. Neither this presentation nor

anything contained herein shall form the basis of, or be relied on in connection with, any contract or commitment whatsoever.

Gunkul makes no representation or warranty, either expressed or implied, in relation to the accuracy, completeness or reliability of the

information contained in this presentation. The information set out herein may be subject to updating, completion, revision, verification

and amendment without notice and such information may change materially. The information in this presentation should not be regarded

by recipients as a substitute for the exercise of their own judgment.

This presentation may contain forward-looking statements and estimates with respect to the future operations and performance of

Gunkul, its subsidiaries and affiliates. These forward-looking statements are subject to various assumptions, risks and uncertainties,

many of which are difficult to predict and are generally beyond the control of Gunkul. Such assumptions, risks and uncertainties could

cause actual results and developments to differ materially from those expressed in or implied by the forward-looking statements. Neither

Gunkul nor any of its directors, officers, employees, advisors or representatives assumes any responsibility to update any of the forward-

looking statements to conform such statements to actual results or developments, to reflect the occurrence of anticipated results or

otherwise. Neither Gunkul nor any of its directors, officers, employees, advisors or representatives nor any other person accepts any

liability whatsoever for any loss, however arising, from any use of this document or its contents or otherwise arising in connection

therewith.

Any opinions expressed in this presentation are subject to change without notice and may differ or be contrary to opinions expressed by

other business areas or groups of Gunkul as a result of using different assumptions and criterion.

Gunkul Engineering Public Company Limited

1177 Pearl Bangkok Building, 8th Floor, Phahonyothin Road, Phayathai , Phayathai, Bangkok 10400

48

Documents

Gunkul Engineering Public Company Limited